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Government of India has launched One District One Product initiative for development of Indian Agricultural Sector under the vision of Aatmanirbhar Bharat. This initiative is in sync with the government’s vision that the benefits of development must reach the last-mile citizens. This vision can only be ensured by public policy interventions like ODOP, which are effective and sustainable.
What is One District One Product?
One District One Product- ‘One District One Product’ (ODOP) initiative has been launched under ‘Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme’.
The major objectives of the PMFME scheme through ODOP
(a) Improved access to financial assistance to micro food processing entrepreneurs for technological upgradation
(b) Funding outlay of Rs. 10,000 cr to support over 2 lakh micro-food processing enterprises comprising FPOs, SHGs and Co-operatives in India
(c) Capacity building of micro-food processing enterprises through skill training, enhanced technical knowledge, and hand holding services
(d) Enabling the existing informal entities into formal registration as ‘agri-based business enterprises’.
Products under the scheme
a. The products under ODOP can be perishable agricultural produce, cereal-based product, or a food product widely produced in a district and their allied sectors. For ex- Mango, Potato, Litchi, Tomato, Tapioca, Kinnu, Bhujia, Petha, Papad, Pickle, Millet-based products, Fisheries, Poultry, Meat as well as Animal feed.
b. Traditional and innovative products including waste to wealth products could be supported under the Scheme. For ex- Honey, Minor forest products in tribal areas, Traditional Indian herbal edible items like turmeric, amla, haldi.
Process of approval
The State governments must carry out a baseline survey to identify the food product for a district. The Union government approves these products, which will be provided financial assistance for value addition.
Under the ODOP scheme, the Government of India has approved 137 unique products in 713 districts of 35 States and UTs.
What are the components of One District One Product?
| Common Infrastructure | The ODOP scheme has made provisions for usage of common infrastructure facilities at rural areas for all the FPOs, SHGs and Cooperatives. The infrastructure facilities can be utilised for sorting, grading, warehousing, and cold storage of ODOP products. |
| Development of Clusters | There are provisions of development of multiple clusters for one product or one cluster being extended to multiple districts depending upon the nature of products and perishable goods. |
| Value-Addition | The cluster-based approach has facilitated processing and ensuring effective marketing ecosystem for the various products under ODOP. |
| Branding and Marketing | Common brand, Common packaging and Common standards have been instituted to make the ODOP products available to the consumers. |
| Institutional Architecture | Project Management Units (PMUs) have been set up with experts and consultants to guide the State Nodal Agencies (SNAs), State Level Approval Committee (SLAC) and District Level Committee (DLC), |
What are the benefits of the scheme?
(a) Local and community development- The scheme promotes local and community development by providing in-situ employment, empowering rural women and youth, and nurturing the sustainable livelihoods for them.
(b) Economic Self-reliance- The One District One Product initiative aims at promoting and preserving the local best practices and micro-enterprises, enabling the creation of local economically self-reliant ecosystem. For ex- Promotion of tribal products through ODOP initiative makes the tribals economically self-reliant.
(c) Skill Development and entrepreneurship- The initiative has facilitated the skilling, upskilling, reskilling and training of local talent, which in turn has promoted localised entrepreneurship and region-specific innovations. For ex- Rise in entrepreneurship in the Makhana producing District of Darbhanga in Bihar.
(d) Local to global approach- The initiative of One District One Product has enhanced exports/foreign exchange earnings of the nation. It has led to the development of agri-based MSME and to the ‘Aatmanirbhar Bharat‘ movement.
What are the challenges of the Scheme?
(a) Lack of adequate storage infrastructure- India lacks adequate and effective post harvest infrastructures like cold-chain infrastructure for the storage of perishable products under ODOP.
(b) Low access to financial support- The producers of the distinct products under the ODOP initiative lack access to adequate financial support for scaling their businesses. For ex- Inadequate credit linkages in the aspirational districts producing distinct products.
(c) Market linkages- The lack of forward and backward marketing linkages of the products is still a pertinent challenge for the success of ODOP.
(d) Low awareness- There is lack of awareness among the producers of these distinct products about the benefits of this initiative.
(e) Less penetration of FPOs, SHGs in food processing sector- There is less penetration of FPOs and SHGs in the food processing sector in the eastern and north-eastern states of the country.
| Read More- Food Storage Infrastructure |
What should be the way Forward?
1. Modernization of the existing storage to include horticultural crops- The existing warehousing infrastructure must be modernised to include perishable commodities like fruits, vegetables, milk, meat, fish, which are included in the ODOP scheme.
2. Exploration of PPP route- The PPP route must be explored to create modern storage systems for ODOP products and their marketing.
3. Investment in Research and Innovation- Investment in agricultural research and innovation to develop new technologies for climate resilient crop varieties must be scaled up. For ex- Development of drought resistant crops varieties for ODOP products.
4. Improving financial access- The awareness about the financial benefits under the scheme must be increased to improve the financial access of producers.
| Read More- The Indian Express UPSC Syllabus- Agricultural Marketing- GS 3 |
